Posts Tagged ‘criminal misconduct’

Avoiding Any Possible Exposure to Allegations of Fraud and Criminal Misconduct

Friday, July 29th, 2011

The exclusive purpose for the information which is provided from this website is to disseminate  information, and not to provide tax advice.

An excellent article on this subject was published this month in the August 2011 issue of the Journal of Accountancy, which is an official publication for the American Institute of Certified Public Accountants.   This is a link to that article:  http://www.journalofaccountancy.com/Issues/2011/Aug/20114034.htm   The “Executive Summary” for the article states that “Taxpayers may be subject to criminal prosecution for felonies, including tax evasion, under IRC (Internal Revenue Code) section 7201 and filing false returns under (IRC) section 7206″  “In addition to criminal investigations, the IRS may also pursue civil penalties, including the (IRC) section 6663 fraud penalty.”  

Clearly it is always in the best interests of both taxpayers and business owners to proactively ensure that they never become the subject of these types of investigations by any agency or taxing authority.  Proverbally, Benjamin Franklin reminded us that “An ounce of prevention is worth a pound of cure!”   In a nutshell, either acquire all of the knowledge and expertise that you need to meet ALL of the regulatory requirements for your business operations or engage someone who does have these skills. 

In his play Hamlet, William Shakespeare wrote the line “To thy own self be true..”  In the context of this article it means that you should always be mindful of your own knowledge and skills, and that you should always remain within those boundaries.  If the demands (requirements) of your business or personal financial situation are becoming so complex as to exceed those limitations, contact a professional whose education, knowledge, and experience are appropriate for your situation. 

Finally, if you have been notified that you are the subject of a fraud or criminal miscounduct investigation you should immediately contact an attorney with the experience and skills to assist you in the satisfactory resoulution of these issues.   Â